The firm set a price target of $119 for the energy company.
The report takes into account political instability in Egypt, while evaluating Apache's shares and adjusts the weighted average cost of capital (WACC) to compensate for the volatility.
"We understand the market concerns surrounding Egypt and the political instability of the region and thus have increased the company's WACC by 150 bps. However, at current levels we estimate Apache receives no value for its Egyptian assets. Excluding Egypt from our model and maintaining an elevated WACC, APA would be worth $83 per share," KLR Group said.
"However, if we unwind the WACC adjustment, APA's valuation without Egypt is $108 per share," KLR Group added.
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Separately, TheStreet Ratings team rates APACHE CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate APACHE CORP (APA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."